The U.S. Senate has passed housing legislation that includes a ban on the Federal Reserve creating a central bank digital currency (CBDC) by 2030, and it is expected to be quickly adopted and passed by the House.
The Senate voted 85-5 on Monday to advance the Pathway to 21st Century Housing Act, which aims to augment the housing supply, after a bipartisan group of House and Senate leaders reached an agreement last week to move forward with the legislation.
The bill has included a CBDC ban since the Senate first passed a version of the bill in March that states the Fed cannot, directly or indirectly, “issue or create a central bank digital currency or any digital asset that is substantially similar to a central bank digital currency.”
Cryptocurrency advocates have long criticized CBDCs, which they see as an attempt by governments to bring digital currency under central bank control, and the bill is expected to be a victory for Republicans who have tried to ban CBDCs for years.
The bill will now be sent to the House of Representatives for a vote, where it is expected to be quickly passed with an agreement reached by House leaders last week, before being sent to the president for his signature.
The bill’s CBDC clause was included in the housing package as a political sweetener to secure support from House Republicans and the administration for faster passage.
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The ban excludes stablecoins or any “dollar-denominated currency that is open, permissionless and private” and that even after the CBDC ban is lifted in 2030, the Fed will not be able to operate on a CBDC without explicit congressional approval.
Part of the housing bill prohibiting the Federal Reserve from creating a CBDC. Source: Senate Banking Committee
Meanwhile, other countries are moving ahead with their CBDC plans.
Reuters reported On June 16, China registered 26 financial institutions on its digital yuan (e-CNY) cross-border payment platform.
Three countries have officially launched CBDCs, 41 are in the pilot phase, 33 are in development and 40 are still conducting research, According to to the Atlantic Council think tank.
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